JPMorgan cuts Jamf stock price target to $18 from $20

On Tuesday, JPMorgan analysts adjusted their outlook on Jamf Holding Corp. (NASDAQ:JAMF), reducing their price target to $18.00 from the previous $20.00, while retaining an Overweight rating on the stock. Currently trading at $13.76, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $16 to $27. The firm indicated that Jamf’s guidance for 2025 suggests a more cautious stance than previously anticipated, despite a seemingly more stable macroeconomic environment.

The company is projecting a slowdown in revenue growth for the consecutive year, with an expected 400 basis point deceleration in 2025, following a 500 basis point slowdown in 2024. However, the core Subscription business appears to be nearing stabilization, with Annual Recurring Revenue (ARR) growth projected at 8% for 2025, down from 10% in 2024 and a decrease from 15% growth in 2023. InvestingPro data shows the company maintains a robust gross profit margin of 79.6% and has achieved a 25% revenue CAGR over the past five years.

Jamf’s Q4 bookings were strong, but the company remains wary due to recent tech industry layoffs and uncertain timing for a market rebound. This uncertainty has led Jamf to adjust its long-term financial goals, moving away from its 2026 target of achieving the Rule of 40—a metric indicating strong performance by measuring combined growth rate and profit margin. The company now aims to reach this target by the end of fiscal year 2026, with the possibility of hitting it on a full-year basis in 2027.

JPMorgan’s revised expectations for Jamf’s fiscal years 2025 and 2026 reflect the limited visibility into a market recovery. Nonetheless, the analysts see the stabilization of the company’s growth trajectory as a positive sign, potentially leading to a consistent achievement of the Rule of 40 in the future. This outlook adjustment has also resulted in lowered earnings per share forecasts for the company, which in turn has influenced the reduced price target for December 2025. According to InvestingPro, the company maintains a "Fair" overall financial health score, with particularly strong marks in growth potential and relative value metrics. For deeper insights into Jamf’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Jamf Holding Corp. announced its acquisition of Identity Automation for approximately $215 million, a strategic move expected to enhance its cybersecurity offerings. The acquisition is anticipated to positively impact Jamf’s revenue and non-GAAP operating income. In light of this development, Mizuho (NYSE:MFG) analysts have maintained their Outperform rating on Jamf stock, setting a price target of $18.00. They view the acquisition as a strategic extension of Jamf’s cybersecurity portfolio, potentially offering cross-selling opportunities. Meanwhile, Jamf’s latest financial results revealed mixed outcomes, with annual recurring revenue growing by 10% to $646 million, slightly below the $650 million expected by analysts. Despite this, the company’s non-GAAP EPS of $0.17 exceeded the consensus estimate of $0.15, and its non-GAAP operating income surpassed expectations. JMP Securities adjusted its price target for Jamf to $27.00 from $30.00, maintaining an Outperform rating. Additionally, JPMorgan initiated coverage with an Overweight rating and a price target of $20.00, citing Jamf’s strong positioning in the enterprise market for Apple (NASDAQ:AAPL) devices.

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